State RegulationsFL specificDifficulty 1/5
During the free-look period, a Florida long-term care policyowner returns the policy to the insurer. What refund is the policyowner entitled to receive?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Fla. Stat. 627.9407(8), when a Florida long-term care policy is returned within the free-look period of 30 days after delivery, the insurer must refund the premium. The free look is a no-questions-asked right of examination, so no processing fee, underwriting charge, or other deduction may be subtracted from the refund the policyowner receives.
Why the other options are wrong
- B) Florida's LTC free-look rule requires a premium refund without any processing-fee deduction.
- C) The insurer cannot recoup underwriting costs from a policyowner who returns the policy within the free-look period.
- D) Delivery is what starts the free-look clock; it certainly does not forfeit the refund right.
Memory hook
Return it in the free look, get the full premium back.